How to Open or Activate the NPS Tier II Account?

The Indian government introduced the National Pension Scheme, which is a retirement-oriented pension scheme. Initially, the scheme was only available to government employees, but it was later made available to the general public as well. NPS Tier II is an add-on account that allows you to invest in and withdraw from various NPS schemes without incurring an exit load. Individuals can open an NPS Tier II account alongside a Tier I account, or it can be activated later online or at a Point of Presence (POP).

Benefits

• There are no additional annual maintenance fees to pay.
• Because the account allows for easy and flexible withdrawals with no exit load, you can use it to fund emergency or day-to-day expenses.
• You can transfer funds from your NPS Tier 2 account to your NPS Tier 1 account whenever you want.
• There is no minimum balance requirement in the NPS Tier 2 Account.
• You can name someone to receive the account proceeds in the event of your death.
• You can invest in Tier 2 NPS in the same way that you do in Tier 1 NPS.

Eligibility to Open an NPS Tier 2 Account

• You must be a resident Indian between the ages of 18 and 60.
• You should be assigned a Tier I Account and a PRAN number.
• To open a Tier II Account, you must deposit a minimum of Rs.1000. However, once opened, a minimum deposit of Rs.250 must be made every fiscal year to keep the account active.

How to activate NPS tier II account online?

Step 1: Go to the eNPS website (https://enps.nsdl.com) and select "Tier II Activation."
Step 2: After clicking on Tier II activation, enter information such as your PRAN, date of birth, and PAN. Now, click on 'Verify PRAN'
Step 3: Enter the received OTP and click 'Continue.'
Step 4: Enter your bank account information and click 'Validate Aadhaar.'
Step 5: A confirmation number will appear on the screen and then click 'OK.'
Step 6: Select a Pension Fund Manager (PFM), Click 'Save and Continue.'

Step 7: Enter the nominee's information, then 'Save and Proceed.'
Step 8: Upload a scanned copy of the PAN card as well as a cancelled cheque.
Step 9: Make a payment of minimum investment amount which is Rs. 1000 to your NPS Tier-II account.
Step 10: Sign the application electronically using your Aadhaar number. Step 12: Enter the received OTP and then Submit
Step 11: After successfully e-signing the application, you must download it, print it, sign it and send it to NSDL

How to activate NPS tier II account offline

Step 1: Complete Annexure I of CSRF-1.
Step 2: Return the application form and any supporting documentation to your office/POP-SP.
Step 3: Required Documents
Copy of PRAN Card Copy of PAN & Cancelled Cheque Annexure I of CSRF-1
Step 4: Make a minimum contribution of Rs. 1,000 and receive an acknowledgement receipt.